mascot character
ＥＭＭＡ

Results of Operations
for financial year ended December 31 2021

EM SYSTEMS CO., LTD.
(TSE 1st Section: 4820)ＥＭ ＳＹＳＴＥＭＳ
ＣＯ ．，ＬＴＤ．
These documents have been translated from Japanese originals for reference Purposes only.
In the event of any discrepancy between these translated documents and the Japanese originals, the originals shall prevail. The Company assumes
no responsibility for this translation or for direct, indirect or any other forms of damages arising from the translations.

Contents
I.

“Business Environment / Company Initiatives ”
i.
Business Environment
ii. Company Initiatives

II. “Results of Operations for Financial year ended December 31 2021
i.
Highlights of Financial results
ii. Changes in consolidate results by fiscal yeariii. Balance Sheet Summary
iv. By Segment Sales/Operating Profitsv. By Segment Sales Breakdown
vi. IT Systems for Pharmacies（Quarterly Sales /Moving Annual Total）
vii. IT Systems for Clinics（Quarterly Sales /Moving Annual Total ）viii. IT Systems for Long-term care（Quarterly Sales /Moving Annual Total ）ix. Forecast for the fiscal year ending December 2022
x. Market Share and Number of Customers
xi. Shareholder returns

Supporting DateＥＭ ＳＹＳＴＥＭＳ ＣＯ. , ＬＴＤ．

Shared Information System Foundation(C)2022 EM SYSTEMS Co.ltd. General Affairs Department All rights reserved.

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Our Approach to the New Coronavirus

continuation

Company Initiatives regarding the Novel Coronavirus
We would like to express our heartfelt sympathies to all of you who are dealing first-hand with novel
coronavirus infections (Covid-19). We pray that the pandemic comes to an end as soon as possible andwe pray for your health.
Our company, which continues to support the healthcare (clinics and pharmacies) and long-termcare/welfare industries through our systems, is implementing the following initiatives throughout theentire EM Systems Group in order to minimize the effects on the health and safety of our customers andemployees, as well as on our business, and to continuously provide the stable system access and service.

Working Environments

Utilization of staggered working hours, telecommuting, online meetings and mobile working, as
well as creation of office environments that avoid the three Cs.
Installation of sneeze guards at all seats, mask wearing, and thorough disinfection practices, etc.
Implementation of work style reforms that enable employees to work without coming to the office.

Sale Activities
Sales activities via the Internet and telephones.

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(C)2022 EM SYSTEMS Co.ltd. General Affairs Department All rights reserved.

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Ⅰ. ⅰ. Market environment
Clinics■ Revision of medical fees in April 2022
■ Responses to the Post-Covid-19 Status(Promotion of online medical care, medical consultations by appointment, transition toward cashless systems, etc.)■ Hybridization of exhibitions by academia and private companies, and transition toward holding such exhibitions online■ Transition toward electronic prescriptions, and construction of information viewing environments at medical institutions where
Individual Number Cards are used as insurance certificates(Individual unitization of insurance information, and improvement of patient convenience)

Initiatives● Transition toward cloud-based systems, and provision of cashless services through our subsidiary ChoQi Co., Ltd.
● Application of online demonstrations and online business negotiation tools, and non-face-to-face sales, Exhibition at hybrid expo
(Setting up an online booth)● Participation in the government-promoted electronic medical record standardization verification project● Provision of online qualification confirmation system

4● Enhanced medical system proposal capabilitiesＥＭ ＳＹＳＴＥＭＳ ＣＯ. , ＬＴＤ．

(C)2022 EM SYSTEMS Co.ltd. General Affairs Department All rights reserved.

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Ⅰ. ⅰ. Market environment
Pharmacies■ Revision of medical fees in April 2022
■ Responses to the Post-Covid-19 Status(Optimization of operations within pharmacies, promotion of online medication guidance, delivery of medications, etc.)■ Reorganization, M&A and DX strategy development■ Strong performance in M&A drugstore industry■ Hybridization of exhibitions and transition toward holding such exhibitions online■ Transition toward electronic prescriptions, and construction of information viewing environments at medical institutions where
Individual Number Cards are used as insurance certificates(Individual unitization of insurance information, and improvement of patient convenience)

Initiatives● Transition toward cloud-based systems, automation of systems, and Cooperation with other companies' dedicated software

Proposal for cashless promotion● Launch sales of "MAPs Optional Prescription Reader● Application of online demonstrations and online business negotiation tools, and non-face-to-face sales● Enhancement of chain store sales proposals, promotion of TOP coverage● Provision of online qualification confirmation system● Collaboration with Good Cycle System Co., Ltd and enhanced electronic medical history proposal capabilitiesＥＭ ＳＹＳＴＥＭＳ ＣＯ. , ＬＴＤ．

(C)2022 EM SYSTEMS Co.ltd. General Affairs Department All rights reserved.

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Ⅰ. ⅰ. Market environmentLong-term care/welfare■ Increase in the number of new facilities accompanying the aging of society, and increase in the number of large-scale chain longterm care facilities■ Responses to the Post-Covid-19 Status(Provision of non-contact services, limitations on facility usage, strengthening infection countermeasures, etc.)■ Increase in the demand for digitization of long-term care records, and promotion of information utilizations■ Promotion of scientific long-term care by LIFE（Long-term care Information system For Evidence）

Initiatives● Development and release(planned) of MAPs for NURSING CARE
● Strengthening of chain store sales proposal capabilities
Promotion of TOP coverage● Application of online demonstrations and online business negotiation tools and online exhibitions, non-face-to-face sales● Proposals to promote systemization, and examination of medical and long-term care information sharing● Efficient support and data output for LIFE by Sukoyaka-san
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(C)2022 EM SYSTEMS Co.ltd. General Affairs Department All rights reserved.

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Ⅰ. ⅱ. Company Initiatives
Marketing Activities ,Sale Activities
Clinic Pharmacy

Longterm
care

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contents
Strengthening Web Marketing：Implementation of SEO and SEM measures,
Application of YouTube channel, Raise awareness,Enhancement of online seminars
Improving business partner and customer loyalty through the comprehensive portal site EM-AVALON
Application of electronic contracts, and estimates and configuration examinations conducted
personally by customers through “MAPs DIRECT,” an e-commerce site
Promotion of inside sales, mainly to existing customers
Promotion of sales of "MAPs for CLINIC with ORCA" through collaboration with associates of ORCA,
Japan Medical Association standard receipt software
Launch sales of "MAPs Optional Prescription Reader
Business partnership with Good Cycle System Co., Ltd, Marketing, Online seminars,
Linkage with medication history
Linkage of a tool for online medication guidance and follow-ups during periods of administration
Launch of "EM Analysis Support (free)" ,Release of "MAPs Option | BunseQI (paid)"
Sales promotion of MAPs for PHARMACY by YUYAMA Co., Ltd.
Medical and nursing care information sharing ,Ensure collaboration among hospitals, clinics, andpharmacies
Application of M&A：ClinicＣＯ.
Segment
ClinicＥＭ
ＳＹＳＴＥＭＳ, ＬＴＤ．

：Long-termcare/Welfare
Pharmacy：PharmacyLong-term
careAll7 rights(C)2022 EM SYSTEMS
Co.ltd.Segment
General Affairs
Department
reserved.
Segment7

Ⅰ. ⅱ. Company Initiatives
Development activities
EM Technology Laboratory Co., Ltd（Common name: EMTLab.)●System development subsidiary funded entirely by EM Systems; Established in July 2020・Consolidates state-of-the-art technologies and environments where cutting-edge
innovations are made・Creates globally-adaptable development professionals
・Secures promising human resources by being a company that is attractive to developers
・Clarifies and optimizes profitability as a development organization
 Strengthening product competitiveness through expanding the functions of the alreadyreleased MAPs for CLINIC and MAPs for PHARMACY Development of MAPs for NURSING CARE, a long-term care/welfare system, andpreparations for release Contribution to standardizing the industry and reducing costs through the OEM provisionof a shared engine: Expansion to other companies in the same fieldＥＭ ＳＹＳＴＥＭＳ ＣＯ. , ＬＴＤ．

(C)2022 EM SYSTEMS Co.ltd. General Affairs Department All rights reserved.

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Ⅰ. ⅱ. Company Initiatives
Social contribution activities
 Sponsor participation in the KIMIKO DATEx YONEX PROJECT

 Ai Love All Tennis Academy
Participation as a professional tennis player sponsor
EM Tennis Clinic Held
Ai Hasegawa joins the team.

EM Tennis Clinic
2 times in 2021

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(C)2022 EM SYSTEMS Co.ltd. General Affairs Department All rights reserved.

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Ⅰ. ⅱ. Company Initiatives
Social contribution activities
 Donations to course for the development of health care AI (Course head: Specially-appointed AssistantProfessor Yoshimasa Kawazoe M.D., Ph.D.)
We agree with the purpose of the Artificial Intelligence in Healthcare course at the University of Tokyo, aimed at developing abase for new medical services focused on AI and ICT, and we have been supporting the course’s activities through continuous
donations since 2017.

 Participation in examination of next-generation electronic medical record base (Representative: Professor
Kazuhiko Ohe, M.D., Ph.D. at the University of Tokyo)
We participate in NeXEHRS Consortium, established with the goal of constructing a next-generation electronic medical record
sharing platform.

 Participation in a control experiment for medical information coordination (Representative: Professor
Kazuhiko Ohe of the University of Tokyo)
We participate in the Platform for Health and Medical Information (PLAT) control experiment hosted by NeXEHRS Consortiumand the NeXEHRS Research Group of Japan Association for Medical Informatics (JAMI) through MAPs for CLINIC , with the aimof implementing medical information coordination based on the Ministry of Health, Labour and Welfare data standards, etc.

 Support for polypharmacy measures (Representative: Professor Hirohisa Imai Ph.D. at the University ofTokyo)
We agree with the purpose of the polypharmacy measures promoted by the Society for the Promotion of Proper Drug Usage,
and we support its activities as a special member.

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(C)2022 EM SYSTEMS Co.ltd. General Affairs Department All rights reserved.

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Ⅰ. ⅱ. Company Initiatives / Formulation of materiality (key issues)
A watchword for SDGs/ESG promotion「Another Step Toward a Better Tomorrow」
Formulation of four types of materiality (key issues) under the key concept of “Thanks” from “
Build infrastructure that leads to "Thanks“・Development of systems required for reliableinfrastructure・Training of human resources that enable systems tooperate continuously・Create organization that ensures quality

Build trust relationship that leads to "Thanks“・Create organization that ensures quality
・Enhanced corporate governance・Ensuring wellbeingＥＭ ＳＹＳＴＥＭＳ ＣＯ. , ＬＴＤ．

"

Environmental measures that lead to "Thanks“・Product development with lower environmental
impact in mind
・Utilization of clean energy sources
・Risk management to tackle environmental
impact and climate change

Value creation that leads to "Thanks"・System development that helps form medical teams
・Development and proposals of services that help bringfurther happiness and health improvements to people
・Contribute to achieving DX and training of capable humanresources that the government is aiming for(C)2022 EM SYSTEMS Co.ltd. General Affairs Department All rights reserved.

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Ⅰ. ⅱ. Company Initiatives / Strengthen sustainability management
Formulation of an outline of efforts focused on materiality (key issues )Materiality(key issues )Overview of Initiatives

Examples of Initiatives• Development of systems required for reliableinfrastructure• Training of human resources that enable systems tooperate continuously• Create organization that ensures quality• Development and dissemination of MAPs Series• Development of services for linking medical
information (EHR)

２．Build trust relationship that leads to"Thanks"• Advance security measures• Enhanced corporate governance• Ensuring wellbeing• Promotion of health management• Improvement of employee engagement• Establishment of new communication methods
with customers• Sports promotion activities

３．Environmental measures that lead to"Thanks"• Product development with lower environmental impact
in mind• Utilization of clean energy sources• Risk management to tackle environmental impact andclimate change• Calculation of energy consumption andformulation of reduction targets• Consideration of response to TCFD
recommendations

４．Value creation that leads to "Thanks"• System development that helps form medical teams• Development and proposals of services that help bringfurther happiness and health improvements to people• Contribute to achieving DX and training of capable
human resources that the government is aiming for• Human resource development program• Support for advanced academic research in the
medical field

１．Build infrastructure that leads to "Thanks"

・Press release dated February 9, 2022.
Notification regarding formulation of materiality (key issues) and long-term goal setting
・Disclosing the status of our initiatives on our sustainability website
EM Systems Website > Sustainability
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(C)2022 EM SYSTEMS Co.ltd. General Affairs Department All rights reserved.

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Ⅱ. ⅰ. Financial Highlights for December 31 2021
consolidated results of December 31 2021

Topics for December 31 2021
□ Existing system (dispensing/medical) sales volume exceeded expectations, contributing to higher sales□ Installation of the system accelerated in line with online eligibility verification becoming fully operational,
contributing to the increase in sales□ Increase in the number of MAPs series customers also conducive to billing sales growth□ Ordinary income increased due to payment of dividends from accumulated income as a result of changes
in the business content of our deconsolidated wholly owned subsidiaryＥＭ ＳＹＳＴＥＭＳ ＣＯ. , ＬＴＤ．

(C)2022 EM SYSTEMS Co.ltd. General Affairs Department All rights reserved.

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Ⅱ. ⅱ. Changes in consolidate results by fiscal year
Flow-Based

Fully Stock-Based

Partially Stock-Based(Millions of yen)

Sales
9,573

11,395

11,288

8,776

9,818

8,202

9,013

10,257

11,36911,257

13,19913,676

13,953

13,133

14,023

9,660

14,436

15,682

16,404

16,7102006.3 2007.3 2008.3 2009.3 2010.3 2011.3 2012.3 2013.3 2014.3 2015.3 2016.3 2017.3 2018.3 2019.3 2020.3 2020.12 2021.12 2022.12 2023.12 2024.12

Operating Profits

The 2020 fiscal year was a 9-month accounting period due tochange in the fiscal year end(Millions of yen)

1,317

1,740

1,010

86

835

1,209

1,672

1,232

1,861

2,597

3,063

2,622

1,583

1,037

1,870

2,003

2,503

3,466

2006.3 2007.3 2008.3 2009.3 2010.3 2011.3 2012.3 2013.3 2014.3 2015.3 2016.3 2017.3 2018.3 2019.3 2020.3 2020.12 2021.12 2022.12 2023.12 2024.12-721-1,317

Profit Margin
ratio

13.8%

19.0%

15.3%
9.3%

8.9%

11.8%

14.7%

10.9%

14.1%

22.0%

20.7%

20.0%
11.3%

10.7%

13.0%

12.8%

15.3%

1.0%
-7.3%
2006.3 2007.3 2008.3 2009.3 2010.3 2011.3 2012.3 2013.3 2014.3 2015.3 2016.3 2017.3 2018.3 2019.3 2020.3 2020.122021.12 2022.122023.12 2024.12-15.0%ＥＭ ＳＹＳＴＥＭＳ ＣＯ. , ＬＴＤ．

(C)2022 EM SYSTEMS Co.ltd. General Affairs Department All rights reserved.

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Ⅱ. ⅲ. Balance Sheet Summary （Units: Millions of yen）

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(C)2022 EM SYSTEMS Co.ltd. General Affairs Department All rights reserved.

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Ⅱ. ⅳ. By Segment Sales/Operating Profits※Segmented sales and operating profits and losses are the amounts before elimination of internal transactions between segments.
※We have changed the fiscal year ended from March 31 to December 31 starting from the 2020 fiscal year.

IT Systems for Pharmacies･･Contribution to increased sales through expansion of online qualification confirmation system installations
initial sales and system usage fee sales increased as a result of an increase in the number of existing systemsales volume exceeded expectations.
IT Systems for Clinics･･･････In addition a full-scale introduction of online qualification confirmation systems, increase in sales as a resultof an increase in the number of existing system sales, and a steady increase in billing sales.
IT Systems for long-term care/welfare･･････ In addition to the initial introduction of large-scale projects, billing sales remained strong
Following the revision of the Long-term Care Act, we have invested in new system development personnel torespond to the revision, resulting in a temporary decrease in new development of "MAPs for NURSING CARE"
and increased manufacturing costs.
Other Business ････････・・・・Due to changes in the management structure of rental conference rooms, rental conference room sales are nolonger included in other business sales and operating income, and SG&A expenses increased due to the initialof the cashlessbusinessfor subsidiaries
16
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EM SYSTEMS
Co.ltd.
General Affairs Department All rights reserved.

Ⅱ. ⅴ. By Segment Sales Breakdown※Net sales by segment are the amounts before elimination of inter-segment transactions.

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Ⅱ. ⅵ. IT Systems for Pharmacies
Quarterly Sales （Units: Millions of yen）

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Ⅱ. ⅵ. IT Systems for Pharmacies
Moving Annual Total（Units: Millions of yen）

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(C)2022 EM SYSTEMS Co.ltd. General Affairs Department All rights reserved.

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Ⅱ. ⅶ. IT Systems for Clinics
Quarterly Sales （Units: Millions of yen）

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Ⅱ. ⅶ. IT Systems for Clinics
Moving Annual Total（Units: Millions of yen）

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Ⅱ. ⅷ. IT Systems for Long-term care/Welfare
Quarterly Sales （Units: Millions of yen）

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Ⅱ. ⅷ. IT Systems for Long-term care/Welfare
Moving Annual Total（Units: Millions of yen）

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Ⅱ. ⅸ. Forecast for the fiscal year ending December 31 2022
（Millions of yen）

※Segmented sales and operating profits and losses are the amounts before elimination of internal transactions between segments.
※ The Company has changed the fiscal year end from March 31 to December 31 starting from the 2020 fiscal year.

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(C)2022 EM SYSTEMS Co.ltd. General Affairs Department All rights reserved.

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Ⅱ. ⅹ. Market Share and Number of Customers
IT Systems for Pharmacies

IT Systems for Clinics

IT Systems forlong-term care/welfare

Market share35.6％

Market share 3.1％

Market share 5.7％

Number of customers ：17,781
Target population：50,000
Mid-term goals：25,000

Number of customers ： 2,777
Target population：90,000
Mid-term goals：7,000

Number of customers ： 14,205
Target population：250,000
Mid-term goals： 25,000*1 The number of customers indicates the number of pharmacies and clinics that purchased our system products.
*2 The above target populations represent the number of pharmacies and clinics that we considered as our potential customers, and differ from theactual number of registered pharmacies and clinics.
*3 Mid-term goals are as announced in February 2022.
(as of December 31 , 2021)

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(C)2022 EM SYSTEMS Co.ltd. General Affairs Department All rights reserved.

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Ⅱ. ⅺ. shareholder returns
・Aim at a payout ratio of 30%
・Changing the fiscal year ended from March 31 to December 31 starting from the 2020 fiscal yearchange in thefiscal year end*We conducted stock splits on April 1st, 2016 and March 1st, 2018 and January 1st, 2020 at a ratio of two shares per one ordinary share.
The aforementioned information assumes that each stock split occurred at the beginning of March 2014.

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(C)2022 EM SYSTEMS Co.ltd. General Affairs Department All rights reserved.

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Supporting Date . Shared Information System Foundation

Specialized Functions(Clinics & Pharmacies）

Pharmacy App

Clinic App(Medical Records)(Medication History, HQ
Functions)

Nursing care/welfare App
CommonFunctions（Clinics & Pharmacies）

Medical Exam. Hearing/ Prescription Bags /Pharmaceutical Info. / Inventory

Common Master/Contents(Medication/Prescription Check/Meal Recipes)

Counter Accounting/Receipt Billing（Medical Insurance, Nursing Insurance and Independent Local Aidfor Medical Expenses）

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Specialized
Functions（Nursing care/welfare ）(C)2022 EM SYSTEMS Co.ltd. General Affairs Department All rights reserved.

CommonMasterCommonEngine27

Contact:
EM SYSTEMS CO., LTD.
IR Section, General Affairs Department
Shin-Osaka Brick Bldg.
1-6-1 Miyahara, Yodogawa-ku,
Osaka 532-0003, Japan
https://emsystems.co.jp/ir/mailform.html

The contents in this presentation materials are based on assumptions judged to be valid and information available to
the Company’s management at the time they were prepared. The Company assumes no obligation to update or revise
any information, whether as a result of new information, future events or otherwise.
As forecasts contained herein are based on assumptions of numerous uncertain factors, actual results may differ
significantly from these forecasts for a number of reasons.